Precious Metals Preview: Gold shows little upside as rate hike bets intensify

COMEX gold witnessed a sharp meltdown in the previous session after stronger-than-expected US inflation data strengthened expectations of a rate hike in December. The Bureau of Labor Statistics (BLS) reported that the headline Consumer Price Index (CPI) grew at a faster pace of 0.4% Month-on-Month (MoM) against 0.3% estimates. In the same period, the core CPI ? which excludes volatile food and energy items ? arrived at 0.3%, higher than expectations of 0.2%. Fed Governor Christopher Waller said that a half-point Fed rate hike may be needed in December, if October core CPI inflation comes in around 0.3% or higher. Gold fell over 2% yesterday before recovering by half a percent this morning to $4055.20 an ounce. Meanwhile silver is up more than 2% at $52.41 an ounce. Silver prices have decreased by 26.13% since the beginning of the year.

Powered by Commodity Insights